WHETHER or not Guernsey gets a passport to market its products in and out of the EU as part of any future directive on hedge funds and private equity remains the key issue for the local fund industry.

Two EU votes last week saw two separate drafts of the alternative investment fund managers directive approved.

And while one made provisions for third-party access to the EU, the draft voted on by EU finance ministers, including new UK chancellor George Osborne, did not, although its minutes did acknowledge that some ministers had expressed concern in relation to third-country provisions.

Wayne Atkinson (pictured), a senior associate in the commercial department at Collas Day, said it was likely that some sort of compromise would be reached between the various branches of the two drafts, but with so many differences still between them it was impossible to say just what shape the final directive would take.

However, third-country provisions would remain the most divisive point.

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